exchange of contracts exˌchange of ˈcontracts noun exchanges of contracts PLURALFORM [countable usually singular]
PROPERTY when property is being bought and sold, the moment when the buyer signs the contract of sale and sends it to the seller, who also signs it, making the sale effective:
• Exchange of contracts is the vital moment of agreement, after which it is very difficult to withdraw without stiff financial penalties.
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exchange of contracts UK US noun [C or U]
► PROPERTY a final agreement between the buyer and seller of a property, after which the sale cannot legally be stopped: »
Before exchange of contracts either the seller or the buyer can withdraw without having to make any payment.
Financial and business terms. 2012.